Time to Panic About Pfizer's Upcoming Patent Expirations?

Many investors are attracted to Pfizer (NYSE: PFE  ) , Merck, and Johnson & Johnson -- the only pharmaceutical companies in the Dow Jones Industrial Average -- for their robust dividends. The cash these companies generate, however, is largely dependent on patent protection for the companies' branded pharmaceutical products. When patents expire, revenue quickly erodes in the face of generic competition.

Pfizer is still dealing with the patent expiration of its megablockbuster drug Lipitor, but are there additional expirations looming in the near future? And how does Pfizer compare with peer Eli Lilly  (NYSE: LLY  ) ? In the following video, taken from the Motley Fool's health care show Market Checkup, analysts David Williamson and Max Macaluso discuss these topics in detail.

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  • Report this Comment On August 13, 2013, at 7:55 PM, DAG_Investments wrote:

    Thanks for the balanced approach to the subject, as opposed to the typical "oh no patent cliffs will drive these companies bankrupt ... sell, sell, sell!!" type coverage that has become all the rage.

    Re: Pfizer

    According to AARP, Pfizer is very likely to do $3 billion in Lipitor sales in 2015. That sounds more like a modest patent slope than the fatal "cliff" the shorts have been claiming since 60% ago.

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Related Tickers

9/30/2016 4:00 PM
PFE $33.87 Up +0.55 +1.65%
Pfizer CAPS Rating: ****
LLY $80.26 Up +0.52 +0.65%
Eli Lilly and Co. CAPS Rating: ***